Technical outlook and chart setups:
Gold has retested the lows at $1,220.00 today and is setting up for a rally for now. The metal is holding the Fibonacci 0.618 support for now and bulls are poised to retain control untill prices remain above the levels of $1,215.00. Immediate support is seen at $1,205.00 followed by $1,170.00 and lower while resistance is seen at $1,245.00 followed by $1,285.00, $1,307.00, $1,340.00 and higher, respectively. Remember that the metal has turned bullish on higher time frames and the trend is supposed to remain higher targeting the levels of $1,340.00 and up to $1,400.00. It is recommended to remain long for now and also to add further positions.
Trading recommendations:
Remain long for now; stop is at $1,170.00, target is open.
Good luck!
